If your limited liability company (LLC) sells physical products or certain types of services, you will need to collect and pay sales tax. In Pennsylvania, the first step is visiting the department of revenue website and registering for sales tax in order to acquire a seller’s permit, or sales tax permit.
What Products and Services Are Subject to Sales Tax in Pennsylvania?
Tangible property that is sold, rented, or leased is subject to sales tax in Pennsylvania. Services on tangible property are also taxable. Tax exemptions include food, clothing, textbooks, and prescription medication.
Pennsylvania Sales Tax Rate
The sales tax rate in Pennsylvania is 6%.
Five states have no sales tax. Colorado has the lowest sales tax at 2.9%, while California has the highest rate at 7.25%.
How to Register for Pennsylvania Sales Tax
In Pennsylvania, acquire a seller’s permit by following the department of revenue’s detailed instructions for registration:
- Create an account on the department of revenue website.
- Fill out the seller’s permit application.
- There is no fee to apply for a seller’s permit in Pennsylvania.
Use our Sales Tax Calculator to calculate taxes and total purchase amount.
In Pennsylvania, and across the country, collecting sales tax is a must if you want to avoid potentially heavy fines and even closure. It’s crucial that you follow your state’s laws, and you might consider consulting with an accountant or tax attorney to make sure you’re in full compliance.